About The Company
The product of the company includes uniforms, work-wear fabrics & blended suitings (P/V) marketed under S.Kumars & Belmonte brands. Home textiles are sold under Carmichaelhouse brand & Ready-to-wear Garments sold under Belmonte brands. Worsted suitings, Wool-polyester blended suitings, Ready to wear garments are also now sold under Reid & Taylor brand. And it has brand ambassadors as Amitabh Bachchan and also Shahrukh Khan during the IPL matches.The company has ambitious plans for the future and is using this lull to spread its presence and operations. Fundamentals would not mean much if there is no investor fancy. So for now, textile stocks, how much ever brand savvy it might be, would not be a good idea.
About The Results
The company has posted results for Q3FY09, on a YoY, the net sales was up 33% but PAT was down 34%. For the 9MFY09, the company posted a net sales of Rs.1698.72 crore as against Rs.1748.65 crore in FY08. Net profit for the nine months was at Rs.150.82 crore compared to Rs.205.59 crore in FY08. Surely, a miracle would be needed to post a 36% rise to maintain the same net profit. Its topline will surpass that of FY08 but bottomline would be difficult.
About The Stock
Despite a good performance, the company touched new low at Rs.13.15 on 9th March 09’ and is now hovering around the same levels. There exists a low investor fancy for textile stocks, brand equity makes no difference. And given the overall slowdown and the major impact it is having on the textile sector, it no wonder that investors prefer to stay away.
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